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A payroll tax is a percentage withheld from an employee’s pay by an employer who pays it to the government on the employee’s behalf. The tax is based on wages, salaries tips etc.
Payroll plays a major role in the internal operations of a business for several reasons. From the perspective of accounting, payroll and payroll taxes are subject to the laws and regulations.
The Companies typically process the payroll at a regular intervals. This interval varies from company to company and it will often differ within the company for different employees for larger companies.